One-glance verdict
Overvalued
$8.75 our estimate vs market $13.40
Wall Street consensus: $14.45 (65.1% higher than our fair-value estimate)
53% above our estimate, beyond the bull case
Fundamentals snapshot
LifeStance Health Group, Inc.
LFST · NMS · Healthcare · Medical Care Facilities
Current price
$13.40
52-week range
$4.77 - $13.76
Market cap
$5.09B
Balance sheet
Stretched
2.07x Stretched
Net debt $248.21M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 11.3% last year.
- Reward Returns 3.4% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 3.1% (peer median: 4.6%).
What this company does
LifeStance Health Group, Inc.
LifeStance Health provides mental health services like therapy and psychiatric care across the US, both online and in person. Their main income comes from providing these services to patients, and it matters because it shows how much demand there is for their help and how well they are running their clinics to make money from those services, which can be seen in their operating margins (the percent of each sales dollar left after day-to-day business costs).
What it actually does
LifeStance Health provides a wide range of mental health services for people of all ages, from children to the elderly. They offer help for many conditions, such as anxiety, depression, bipolar disorder, and PTSD. Care is delivered through a mix of in-person visits at their centers and virtual appointments online. The company works with many insurance providers, making its services more accessible and affordable for patients. Their approach involves a team of different mental health professionals working together to create personalized treatment plans.
Mental Health Services
This is LifeStance's main business. It includes services like psychiatric evaluations, where doctors assess mental health conditions and can prescribe medication. It also covers therapy and counseling, where patients talk with professionals like psychologists or licensed therapists to work through issues. Additionally, LifeStance offers specialized psychological and neuropsychological testing to help diagnose conditions. Most of their revenue comes from these services, which are typically paid for by insurance companies on behalf of patients, or directly by patients if they don't have insurance.
What management is betting on now
LifeStance's current strategy is focused on strengthening its existing operations and expanding its reach. A key priority is attracting and keeping skilled mental health professionals, as a shortage of clinicians is a major challenge in the industry. The company is also working to improve the efficiency of its operations, aiming to make it easier for both patients to access care and for clinicians to focus on providing that care. They are also looking to expand their presence into new geographic areas, with a goal of operating in all major U.S. markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$17.67M
FY2024 Q4
$56.02M
FY2025 Q1
$-10.26M
FY2025 Q2
$56.64M
FY2025 Q3
$17.00M
FY2025 Q4
$46.65M
FY2026 Q1
$22.34M
FY2026 Q2
$87.92M
Revenue
$435.35M
Net income
$23.61M
Diluted EPS
—
Operating cash flow
$99.91M
Free cash flow
$87.92M
Fetching…
Sources
Revenue
$403.48M
Net income
$14.24M
Diluted EPS
—
Operating cash flow
$33.11M
Free cash flow
$22.34M
Fetching…
Sources
Revenue
$382.19M
Net income
$11.67M
Diluted EPS
—
Operating cash flow
$57.56M
Free cash flow
$46.65M
Fetching…
Sources
Revenue
$363.81M
Net income
$1.08M
Diluted EPS
—
Operating cash flow
$27.29M
Free cash flow
$17.00M
Fetching…
Sources
Revenue
$345.31M
Net income
$-3.79M
Diluted EPS
—
Operating cash flow
$64.40M
Free cash flow
$56.64M
Fetching…
Sources
Revenue
$332.97M
Net income
$709.00K
Diluted EPS
—
Operating cash flow
$-3.09M
Free cash flow
$-10.26M
Fetching…
Sources
Revenue
$325.48M
Net income
$-7.11M
Diluted EPS
—
Operating cash flow
$62.32M
Free cash flow
$56.02M
Fetching…
Sources
Revenue
$312.72M
Net income
$-5.96M
Diluted EPS
—
Operating cash flow
$22.72M
Free cash flow
$17.67M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.75 vs current price $13.40
Wall Street consensus is the average analyst price target: $14.45 (65.1% higher than our fair-value estimate).
Our most-likely fair value is $8.75 a share — about 34.7% below today's price of $13.40, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $248.2M. Interest coverage 2.1x.
Net debt
$248.21M
Interest coverage
2.07x
LifeStance Health Group, Inc.'s profit covers its interest bill about 2.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
LFST
BASELINE
LifeStance Health Group, Inc.
Total debt $474.15M Interest coverage 2.07x This is the baseline the peer rows are being compared against.
Total debt $2.59B Interest coverage 2.79x +35% vs LFST Carries about 1.3x more debt cushion than LFST.
Total debt $0.00 Interest coverage 0.60x -71% vs LFST Carries about 3.4x less debt cushion than LFST.
Total debt $2.98M Interest coverage -27.68x -100% vs LFST This peer has almost no interest-payment cushion compared with LFST.
Total debt $2.38B Interest coverage 1.88x -9% vs LFST Has roughly the same debt cushion as LFST.
What you should know
The case for and against LFST
3 Rewards
1 Risk
Rewards
-
Revenue grew 11.3% last year.
-
Returns 3.4% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 3.1% (peer median: 4.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
103.08x
Forward P/E
31.11x
P/B
3.47x
P/S
3.21x
EV/EBITDA
39.76x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
33.6%
Operating margin
7.2%
Net margin
3.2%
ROE
3.4%
ROA
2.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.32x
Current ratio
1.38x
Quick ratio
1.23x
Total debt
$474.15M
Total cash
$225.94M
Growth
How the business has been compounding
Revenue TTM
$1.58B
Revenue 5Y CAGR
20.9%
EPS TTM
0.13
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$217.87M
Free CF TTM
$110.03M
FCF margin
6.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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